Tuesday, January 10, 2006

Property in Spain: Bank of Spain warns on house prices The risk of a sharp fall in house prices is increasing and could halt Spain's economic growth, the governor of the Bank of Spain warned. The bank's governor Jaime Caruana said: "The longer the current high rates of house price inflation are maintained, the higher the risk of a more abrupt or disorderly correction in the future." He repeated the European Central Bank's claim that Spanish house prices are between 24 and 35 percent overvalued.